TESLA TRADING SIDEWAYS AFTER BUMPER MONDAY
Tesla closed at 284.38- higher by about 8.5% on Monday following a pair of bullish reports from two brokerages. The brokerages disclosed that it could meet its production targets for the second half of the year
In Pre-market trading, on Tuesday the stock fell about 2.4% after founder and CEO Elon Musk announced the carmaker was reducing the choice of colors from some of its models in an effort to simplify production, a move that could suggest that the group is struggling to reach its own aggressive delivery targets.
The CEO tweeted on Tuesday that 2 of the colors being removed from the base of 7 available choices are obsidian black and metallic silver. However the colors would still be available for potential buyers, but at a higher price than the other models.
On the technical front, the RSI is currently at 37.94% and suggests that the market can continue trading sideways. The current price is below the MA20. The MACD indicator has also generated a selling signal as the fast line is below the slow line and both are below zero.
Overall Bias is mixed and trades can be initiated cautiously with tight Stop Loss and Take Profit targets to book profit for the short term.
TRADE SUGGESTION-LIMIT SELL AT 286 TAKE PROFIT AT 280 STOP LOSS AT 289